This bill amends the Securities Act of 1933 to increase the amount of securities (like stock) companies can offer and sell over a 12 month period while being exempt from some disclosure and registration requirements under Securities and Exchange Commission (SEC) Regulation A+ from $50 million to $75 million. It would require the SEC to adjust the threshold every two years for inflation to the nearest $200,000.
Why Jason Lewis’ Vote Is Against Our Values:
“H.R. 4263 would increase the limit established by the Jump Start Our Business Startups (JOBS) Act for Regulation A+ offerings from $50 million to $75 million, and adjust it for inflation every two years. Such an increase is unnecessary, not supported by the data, and potentially harmful.” (Source: Minority Views, House Report 115-544, Committee on Financial Services)
“This is an unwarranted increase in the threshold. Most fundamentally, Congress should not be undermining public securities markets by expanding the ability of larger companies to make offerings while being exempt from core disclosure and investor protection requirements. Private offerings were designed to permit early stage capital raising from sophisticated investors by small companies, but the current cap of $50 million per year in private capital raising already permits fairly large companies to take advantage of this route. Additionally, the Securities and Exchange Commission (SEC) already has regulatory authority to increase the current threshold, which they examine on a biannual basis.” (Source: Americans for Financial Reform)
“This bill would arbitrarily and prematurely increase by 50 percent the amount that companies can offer and sell under Regulation A+ in a given 12-month period, from $50 million to $75 million. It would do so despite market evidence showing issuers of Regulation A+ offerings neither need nor merit more capital. For these reasons, CFA urges representatives to vote no on this ill-advised legislation.” (Source: Consumer Federation of America)